The real exchange rate,fiscal policy and the role of wealth an analysis of equilibrium in a monetary union

This paper is concerned with the adjustment processes within a potential European monetary union and looks in particular at permanent asymmetric shocks that require an adjustment in a country's (or region's) real exchange rate. We first consider some of the implications of EMU and the question of asymmetries within the European economy. The presence of asymmetries and, in particular, different institutional structures in labour markets is a potential source of tension within a union and it could make a union difficult to sustain. However, automatic adjustment processes will be at work within a monetary union as a result of changes in relative price levels, which change real exchange rates, and also as a result of changes in wealth stocks. We use our econometric world model, NIGEM, to investigate the effects of asymmetric fiscal expansions and real exchange rate misalignments within a monetary union. In order to quantify the effects of such permanent asymmetric shocks we have introduced wealth into our model. Our simulations suggest that the principal impact of the fiscal expansion on both output and the price level will occur within the country in which the expansion occurs. Short-term gains are crowded out in the medium term, and while monetary union reduces crowding out in the short term, it increases the rate at which crowding out occurs thereafter. We also analyse the effects of real exchange rate misalignments and find that the processes of adjustment may be very protracted. This could cause strain on the union as adjustment costs are shared unequally.     

Daily melatonin injections inhibit short-day-induced testicular regression in hamsters

Summary Daily injections of melatonin were found to retard testicular regression in hamsters exposed to LD 10:14, if the injections occurred in the morning (i.e., 0.5 h after lights on), but not if they occurred in the afternoon (i.e., 6 h after lights on). These results indicate that appropriately timed injections of melatonin can at least partially block the inhibitory effects of short days on gonadal activity in the photoperiodic hamster.We wish to thank Susan Losee and Susan Stice for excellent technical assistance and Gary Ellis for his comments. This investigation was supported by NIH grants HD-09885, HD 12622 and Research Career Development Award HD-00249 (F. W. T.) from the National Institute of Child Health and Human Development.     

Altered brain cyclic AMP-responses in rats reared in enriched or impoverished environments

Summary The accumulation of radioactive cyclic AMP elicited by various neurohormones has been examined in adenine-labeled telencephalon slices from rats raised in enriched or impoverished environments. Basal levels of cyclic AMP and responses of the brain slice cyclic AMP-generating systems to norepinephrine, isoproterenol and adenosine did not differe between the two group of rats, while responses to prostaglandin E₁ were significantly greater with the impoverished group and responses to histamine appeared to be greater with the enriched group.     

Serotonin in the human infant carotid body

Summary By immunocytochemistry serotonin was localized in the chief cells of the carotid body in human infants. Radioenzymatic measurement of the serotonin concentration revealed that it represents a significant proportion of the total amine content of the carotid body.     

Sex-dependent action of prenatal fractionated X-irradiation in the mouse. Biochemical findings

Summary X-Irradiation of pregnant NMRI-mice on gestational days 11–13 with 3×1.05 Gy increased postnatal mortality of the female offspring only. Weights, protein content and acetylcholinesterase, as well as Na, K-ATPase activities in the brains of all treated offspring, were changed. There were, however, no differences between females and males with respect to these parameters.We gratefully acknowledge the assistance of Miss C. Gutmann.